Item #18 Colony Plaza
I FOLEY
AGENDA ITEM COVER SHEET
Meeting Date: May 15, 2007
Item # -----.18
Contact Name:
Contact Number:
Paul E. Rosenthal
407 -423-7656
Reviewed By:
Department Director:
City Manager:
#J:tr ____
Subject: Colony Plaza: Authorization to under take certain work related to proposed Code
Enforcement action seeking demolition of Colony Plaza
Background Summary:
The Colony Plaza has been closed for several years due to uncured violations of the City Code.
City staff and the City Attorney have been preparing for a Code Enforcement Board action which
will seek demolition of the Colony Plaza towers and related improvements pursuant to Section 108-
41 of the City Code. In order to pursue this action it is necessary to obtain a legally valid title
search to identify all of the owners of the 246 condominium units and 47 timeshare units (and
weeks). This title search must also identify any mortgages and lienholders of record with respect to
each of the condominium units and timeshare units (and weeks). The City Attorney obtained
proposals for this title search from First American Title and Albig Title. First American will
undertake the title search for a fee of $29,300 and include 1 free update with the second update
being at a cost of $7,325. The proposal from Albig is at a fee of between $29,300 and $59,850 and
includes 2 free updates.
In the event the City is successful in obtaining a demolition order it will be necessary to assure
that the demolition is undertaken in compliance with environmental laws. This will require a Phase
1 environmental site assessment and a pre-demolition asbestos and lead-based paint survey. The
City Attorney believes it would be beneficial to have this information to present to the Code
Enforcement Board in connection with its case for a demolition order and to respond to any
questions regarding the potential cost of the demolition. City staff has obtained a proposal from
Nodarse & Associates to undertake the Phase I ESA for a fee of $1,750 and the pre-demolition
asbestos and lead-based paint survey for a fee of $5,400.
The estimated total cost of the above work based on the proposals is $36,450 with an
additional $7,325 if a second title update is needed.
Issue:
Should the City Commission authorize the obtaining a title search, Phase 1 environmental site
assessment and a pre-demolition asbestos and lead-based paint survey with respect to the Colony
Plaza?
Recommendations
That the City Commission authorize the retaining of First American Title Insurance Company to
undertake a title search with respect to the Colony Plaza in accordance with their proposal dated
LA_ 444220.1
April 5, 2007 and authorize the retaining of Nodarse & Associates, Inc. to a undertake Phase 1
environmental site assessment and a pre-demolition asbestos and lead-based paint survey in
accordance with their proposals of March 22, 2007 and March 23, 2007, respectively., with funding
coming from Account #001-514-00-3101 Legal Expenses.
Attachments:
1) Memorandum dated April 13, 2007 from Foley & Lardner LLP, including proposals from First
American Title Insurance Company dated April 5, 2007 and from Albig Title Services dated April 11 ,
2007.
2) Nodarse Proposal for Phase 1 environmental site assessment dated March 22,2007.
3) Nodarse Proposal for pre-demolition asbestos and lead-based paint survey dated March 23,
2007.
Financial Impact:
$36,450 with funding coming from Account #001-514-00-3101 Legal Expenses. Potential additional
expenditure in a future fiscal year for a second title update in the amount of $7,325.
Type of Item:
o Public Hearing
o Ordinance First Reading
o Ordinance First Reading
o Resolution
~D Commission Approval
o Discussion & Direction
For Clerk's OeD! Use:
o Consent Agenda
o Public Hearing
o Regular Agenda
o Original Document/Contract Attached for Execution by City Clerk
1190 Original Document/Contract Held by Department for Execution
~
D
D
D
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by Assistant City Manager
LA_ 444220.1
:FOLEY
FOLEY & LARDNER LLP
ATTORNEYS AT LAW
MEMORANDUM
CLIENT-MATTER NUMBER
020377-0827
TO:
The Honorable Mayor and City Commissioners
FROM:
Paul E. Rosenthal, Esq., City Attorney
DATE:
May 4, 2007
RE:
Colony Plaza: Authorization to under take certain work related to proposed Code
Enforcement action seeking demolition of Colony Plaza
Staff ReQ.Qtl
ISSUE
Should the City Commission authorize the obtaining a title search, Phase 1 environmental site assessment and a
pre-demolition asbestos and lead-based paint survey with respect to the Colony Plaza?
BACKGROUND/DISCUSSION
The Colony Plaza has been closed for several years due to uncured violations of the City Code. The
Condominium Association has been placed in a receivership under the jurisdiction of the Circuit Court. While
there is not currently a receiver appointed by the Court, led Berman has been appointed as "custodian" of the
assets of the Association. The City staff and City Attorney have been working on various plans which would
lead to the redevelopment of the Colony Plaza site.
The City Commission previously approved an Agreement with the former receiver which would have
reduced the Code enforcement fines and provided for the Code violations to be cured. That plan was ultimately
not successful. Next the City staff intended to consider a condemnation action which would have allowed for
the sale and redevelopment of the site as part of a CRA redevelopment plan. This option was eliminated when
the Florida Legislature removed the power of the City and CRA to condemn private property for redevelopment
purposes. More recently, we have been exploring an action before the Code Enforcement Board which will
seek demolition of the Colony Plaza towers and related improvements pursuant to Section 108-41 of the City
Code. It is anticipated that there will be at least 293 named parties to such an action. Each of the named parties
have due process rights which must be protected in order for the proceeding to withstand legal challenge. We
are not aware of any other circumstances in the State of Florida where a local government has sought to
demolish a condo-hotel in connection with uncured Code violations.
LA_ 444220.1
The City Code requires that notice of the proposed demolition action be given to each of the landowners
and all mortgage and lien holders. We have obtained a printout from the Property Appraiser which list the
current landowners based on the tax records, but does not provide information regarding mortgages and liens.
In order to pursue this demolition action it is necessary to obtain a legally valid title search to identify all of the
owners of the 246 condominium units and 47 timeshare units (and weeks), as well as all mortgages and
lienholders of record with respect to each of the condominium units and timeshare units (and weeks). This
report would be certified to the City and could be relied on for the proceeding. The title search report would
then be entered into a data base which we have created and be cross referenced for accuracy against the
Property Appraiser records.
The City Attorney obtained proposals for this title search from First American Title Insurance Company
and Albig Title Services (which is related to Fidelity Title). Both of these companies have the ability to
undertake the necessary examination of the public records. First American proposed to undertake the title
search for a fee of $29,300 and include 1 free update with the second update being at a cost of $7,325. The
proposal from Albig is at a fee of between $29,300 and $59,850 and includes 2 free updates. Both of the
proposals are reasonable and below the normal search fees which typically run around $250 per Lot or Unit.
We clearly expect to obtain at least one title update during the code enforcement process. At this time, we do
not know whether a second title update will be required or if the City will, at a later date, need to obtain title
commitments. We also believe, but do not know for sure, that some individual timeshare weeks have been sold
to third parties (in which case the title to each of these individual weeks must be searched). On balance, we
believe that the proposal from First American is the most cost effective and represents the best proposal.
In the event the City is successful in obtaining a demolition order it will be necessary to assure that the
demolition is undertaken in compliance with environmental laws. This will require a Phase 1 environmental
site assessment and a pre-demolition asbestos and lead-based paint survey. The City Attorney believes it would
be beneficial to have this information to present to the Code Enforcement Board in connection with its case for
a demolition order and to respond to any questions regarding the potential cost of the demolition. Also, this
information could be material to a determination as to whether or not the Colony Plaza can be rehabilitated.
The City Engineer has obtained a proposal from Nodarse & Associates to undertake the Phase I ESA for a fee
of $1,750 and the pre-demolition asbestos and lead-based paint survey for a fee of $5,400. Nodarse is under a
continuing contract with the City to perform these types of services.
The estimated total cost of the above work based on the proposals is $36,450. The City Attorney and
City staff recommend that these expenditures be approved as part of the process which will ultimately lead to
the demolition of the Colony Plaza towers and have the site brought into compliance with the Code.
Should the City be successful in obtaining a demolition order, it will seek to recover the costs associated
therewith from each of the individual unit owners. It is unclear whether the specific costs associated with the
Code enforcement proceeding will be recoverable. Even if the costs are recoverable as a lien of the property, it
is unknown whether there will be a practical ability to obtain reimbursement of these costs. The intention of the
City Attorney would be to seek reimbursement of all costs.
LA_ 444220.1
: FOLEY
ATTORNEYS AT LAW
111 NORTH ORANGE AVENUE, SUITE 1800
ORLANDO, FL 32801.2386
P. o. BOX 2193
ORLANDO, FL 32802-2193
407.423.7656
407.648.1743
WWW.FOLEY.COM
FOLEY & LARDNER UP
407,244.3257
MEMORANDUM
CLIENT. MATTER NUMBER
020377.0790
TO:
Paul E. Rosenthal
FROM:
Shelley K. Graham
DATE:
Aprill3, 2007
RE:
Colony Plaza. Proposals for Title Reports
I have attached the two proposals for title reports on Colony Plaza, one from First
American Title Insurance Company and one from Albig Title Service, Inc.
Below is an analysis of the two proposals based on an assumption that there are 246
condominium units and 47 timeshare units:
Initial Condo Initial Cost to
Search Timeshare 1st Update 2nd Update convert to
(246 units) Search commitment
(47 units) (293 units)
First $100.00 S100.00 free $25.00/unit $50.00/unit
American
Total: $24,600.00 $4,700.00 7,325.00 14,650.00
Albie Title $100.00 $100-$750 free free fre e
Total: 24,600.00 $4,700. free free free
$35,250
ORLA_ 442112.2
: FOLEY
FOLEY 8< LARDNER LLP
Based on the above quotes, below is the total cost per title company:
r- Total Cost - Initial Total Cost - Initial Total Cost - Initial
I Search and one update Search and two updates search, two
updates and
conversion to
commitment
First American Title $29,300.00 $36,625.00 $51,275.00
Albb~ Title $29,300.00-$59,850.00 $29,300-$59,850.00 $29,300-$59,850
First American Title will charge only $100.00 per unit, regardless of whether it is a
condominium unit or timeshare unit. There will be no additional charge for multiple owners of
the timeshare units. There will be a $50.00 charge per unit to convert the O&E searches into one
title commitment.
Albig Title will charge $100.00 for condominium units. Timeshare units with no weeks
sold will also be $100.00. If weeks have been sold in an individual timeshare unit, the cost for
that individual unit will increase to $750.00. There will be no charge to convert the O&E
searches into one title commitment.
2
ORLA_442112.2
J~lbig Title Service, Inc.
5644 Lake Mal)' Jess Shores Court
Orlando, FL 32839
April 11, 2007
Paul Rosenthal, Esq.
Foley & Lardner LLP
III North Orange Avenue, Suite 1800
Orlando, Florida 32802
RE: Colony Plaza Project
Dear Mr. Rosenthal:
Pursuant to your request, the following is our proposal for the search and preparation of an Owners and
Encumbrance Report for each unit located in Colony Plaza Condominium. A preliminary review of the public
records indicates that the Declaration of Condominium for Colony Plaza was filed March 4, 1996, in Official
Records Book 5021, Page 1612, of the Public Records of Orange County, Florida. The Declaration was
subsequently Amended by Instrument filed August 5, 1996, in Official Records Book 5100, Page 1166, in which
certain units were established as time share units. Preliminary research shows that The Colony Plaza Project is
comprised of approximately 246 Condominium Units and approximately 47 Time Share Units.
Proiect
Search and prepare an Owners and Encumbrance Report for each Condominium Unit and Time Share Unit located
within Colony Plaza Condominium, as set forth in that certain Declaration of Condominium recorded in O.R. Book
5021, Page 1612, and all Amendments thereto, of the Public Records of Orange County, Florida.
Owners and Encumbrance Reports
A standard owners and encumbrance format will be used, and will contain the following information:
1. Time Period Searched.
2. Legal Description.
3. Name of Owner of Record.
4. List of recorded encumbrances.
5. A 20 year judgmentllien search on current record owner(s).
6. 2006 Real Estate Tax Infonnation, including payment status of current and prior years.
7. List of Exceptions affecting the Condominium.
Time Period
The Search will include the time period beginning with recording of the Declaration of Condominium filed in O.R.
Book 5021, Page 1612, through the current effective date found on the Orange County Clerk's website on the date
the report is prepared.
Pricinl!::
The cost per Report will be dependent upon rhe type of unit and if individual unit weeks have been sold for any
particular time share unit.
Tvpe of Unit
Approximate # of Units Cost per Unit
Total
Condominium
246
$100.00
$24,600.00
Time Share '"
(52 unit weeks
per unit)
47
$750
$35,250.00
"'Note: For Time Share Units, in which no individual unit weeks have been sold, the cost will be $] 00.00
per unit. For Time Share Units with one or more unit weeks sold, the cost will be $750.00 per unit, which
will include all 52 unit weeks. The determination of Time Share Units with no unit weeks sold, will be
determined at the time the search is performed.
Note: The above cost includes 2 update reports, per unit. Additional update reports, if requested will be
provided at a cost of $1 0.00, per Condominium Unit and Time Share Unit with no individual unit weeks
sold; and $50.00, per Time Share Unit, with individual unit weeks sold.
CODies
A single set of Master copies of the Declaration of Condominium and Amendments, together with copies of all
exceptions affecting the entire Condominium will be provided.
In addition, a copy of deeds, encumbrances and other instruments reflected on a report will be provided with each
report.
Payment:
Payment of$IO,OOO.OO is required before any work commences. The balance will be due within 30 days of receipt
of the last O&E Report. Check(s) to be made payable to A/big Title Services, lnc.
Time Frame:
The Project will be completed within 8 weeks of receipt of the initial payment of$IO,OOO.OO.
Personnal and Qualifications
Dave Albig - President of Albig Title Services, Residential and Commercial Examiner, with over 25 years of
experience.
Mike Albig - Vice President of AIbig Title Services, Residential and Commercial Examiner, with over 25 years of
experience.
Copy of Error and Omissions Insurance coverage is available upon request.
I appreci.ate your consideration of this proposal and look forward to the opportunity of working with you and your
agent on this project. Please do not hesitate to contact me if you have any questions or require any additional
information.
Best Regards,
0a.J /~:
David Albig
President
~ I Fust American
. .....4-' ,ntle Insurance Company
LARRY P. DEAl. C.L.S.
VICE PRES/OENr
April 5,2007
Ms. Shelley K. Graham
Foley & Lardner
III North Orange Avenue
Suite 1800
Orlando, Florida 32801
RE: Colony Plaza Title Quote
Dear Shelley,
Pursuant to our conversation regarding the Colony Plaza project, I would like to confirm
that the cost for title searches will be $100.00 per unit. This charge will include one
update. All additional updates will be $25.00 per unit. We will not treat the timeshares
as separate ownerships and we will specify the unit and the various fractional ownership
of those units.
If you have any questions or desire further information, please do not hesitate to contact
our 0 ffice.
Sincerely,
LPD/bbb
cc: Paul E. Rosenthal, Esquire
2233 Lee Road. Suite 101. Winter Park.. FL 32789.1883
... 407.691.5200 9 ,.. 407.691.5300
www.firstam.com
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II: ASSOCIRTES, INC.
March 22, 2007
Project No. 01~06.0255-304
Mr. David A. Wheeler, P.E.
City of Ocoee
150 North Lakeshore Drive
Ocoee, Florida 34761
Proposal to Perform a Phase I Environmental Site Assessment
Colony Plaza Building Located at Maguire Road and State Road 50
Ocoee, Orange County, Florida
Dear Mr. Wheeler:
Nodarse & Associates~ Ine. (N&A) is pleased to provide this proposal to perform a Phase I
Environmental Site Assessment (ESA) of the site referenced above. The purpose of this study will be to
provide a professional opinion regarding the possible presence or prior existence of hazardous material or
hazardous waste contamination of soil Dr groundwater at the site. Inquiries with respect to asbestos, lead
based paint, lead in drinking water, radon, methane and/or wetlands are not included in the proposed
scope of work. This proposal presents a brief description of the site, our proposed scope of work, and a
time and fee for providing these services.
Any or all of the following items should be provided by the client prior to the initiation of the assessment,
to assist in the completion of the Phase I ESA in a timely and effective manner:
1. Site plan or survey showing subject property boundaries.
2. Legal description of the subject property.
3. Name and phone number of a key site contact (someone who has a working knowledge of 1he
uses and physical characteristics of the subject property).
4. Copies of any previous site assessment reports completed for the subject property.
5. A disclosure ofany specialized knowledge or experience relating to the subject property.
Our method ofperfonning an environmental evaluation ofa site consists of two (2) phases. For most
projects, this approach has been found to be both cost-effective and time efficient in meeting the needs of
our clients. Phase I of an environmental assessment involves a review of the Public Record of the site and
an on-site reconnaissance directed by a senior-level professional ofN&A. If the Phase I study reveals that
hazardous waste or materials may have been deposited on or near the property, a Phase II evaluation
(including environmental sampling and analytical testing) may be recommended. The extent and details
of a Phase II study cannot be well defined until the Phase I work has been completed. In this proposal.
we will address the scope of work, estimated cost and schedule for Phase I work only. The work
performed in this Phase I study will be done so in accordance with ASlM 1527-05 standards.
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City ofOcoee
Nodarse & Associates, Inc. Project No. 01-06-0255-304
Page 2
Iask 1 - Review of the Public Recorq
This portion of the scope ofworX: serves to identify infomlation readily available in the Public Record of
pa1>1: or present activities On the sites or in the vicinity of the site that may have resulted in significant
contamination of soil or groundwater or deposition ofha7..ardous waste or hazardous materials. Activities
conducted by N&A during this portion of the project include the following:
Review of a title history to delineate previous ownership (if requested by our client and
completed by a qualified title search finn and provided to us). If a title search has been
perfonned, we can use the results vl'ithout duplicating this effort. The cost of the title search is
not included in our fee estimate.
. Review of available historical aerial photographs, U.S.G.S. quadrangle maps and soil surveys.
Review of available operational records and as-built drawings for any structures, utilities or
facilities currently or previously located on-site.
Review of available environmental permits.
Review of regulatory documents and reports and contact as appropriate relevant County, State,
and Federal agencies to ascertain whether any information has been recorded in their files
Concerning contamination on-site, or in the immediate vicinity of the site, and whether or not
known hazardous waste generators are located in the sites vicinity.
Evaluate adjacent site land uses to assess potential for contaminant migration onto the sites.
Task 2 - Site Reconnaissance
A site reconnaissance is perfonned to look for visual evidence of past or current deposition ofhazardous
materials on or adjacent to the site, as well as to further investigate any areas of concern disclosed by the
review of the public record. The site reconnaissance includes the following activities:
· A visual reconnaissance of the site and adjacent properties to observe evidence of spills,
stressed vegetation, buried fuel storage tanks or buried waste, subsidence, or unusual soil
discoloration which may indicate the presence of contaminants on the property.
Photograph the site to document any unusual feature such as those noted above.
Task 3 - Reporting and Recommendations
Upon completion of our review of the public record and site reconnaissance, N&A will provide you with
a verbal report of our findiogs and our preliminary recommenda.tions. Assuming that no further work is
recommended or authorized, a written report will be issued documenting our findings. This written report
will address the following items:
City of Ocoee
Nodarse & Associates, Inc. Project No. Ol-06~0255-304
Page 3
Summary of all studies to date.
· Documentation of all investigation methods and results.
A professional opinion concerning the presence or absence of significant levels of
contamination on-site.
· Recommendations regarding any additional (Phase II) sampling and testing which may be
suggested by the Phase I study results.
N&A proposes to provide the above service for a lump sum fee of$I,750.00. If a Phase I ESA update is
required for the original N&A report (if requested within one year from the date of the original report),
the cost for the update will be $1,100.00. These costs do not include the expense of a title search if
requested. These cost estimates include report preparation and two (2) copies oftbe report addressed and
delivered to the contracted client only. All other report copies and letters of reliance will be invoiced
when they are requested at standard time and material rates. Based on our current schedule of work, we
are prepared to initiate this project immediately upon receipt of your authorization. We anticipate being
able to provide a written report of our findings within 14 business days of written notice to proceed. We
note that our ability to complete these services in this anticipated time frame may be dependent upon the
availability of certain maps, title search completion, records and personneL Ifwe have difficulties in this
regard, we will infonD you at the earliest possible time.
N&A must receive written authorization to proceed with the proposed scope of services on this project.
To autborize us to proceed, please execute and return to us a copy of the attached Agreement sheet or a
Purchase Order number. Authorization should be indicated by the person or fmn responsible for payment
of our invoice. Please note the attached Agreement sheet fonns a part of this proposal and that our terms
are "Net 30 Days."
N&A appreciates the opportunity to submit this proposal and we look forward to being of service to you
on your important project. If you have any questions, or if we can provide any additional information,
please feel free to call us at your convenience.
Sincerely,
NODARSE & ASSOCIATES, INC.
b~~ .~
Debra R. Harrington, p'72f
Environmental Department Manager
~~
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eryl H · ollister, C~S/CAP
Senior Ad inistrative Assistant
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& ASS 0 C I R T E 5, INC.
March 23, 2007
Project No. 01-06-0255-305
Mr. David A. Wheeler, P.E.
City or Ocoee
150 North Lakeshore Drive
Ocoee, Florida 34761
Proposal to Perform a Pre-Demolition Asbestos and Lead-Based Paint Survey
Colony Plaza Building Located at Maguire Road and State Road SO
Ocoee, Orange County, Florida
Dear Mr. Wheeler:
Nodarse & Associates, Inc. (N&A) is pleased to present our proposal to conduct a pre-demolition
asbestos and lead-based paint survey for the Colony Plaza located at 11100 West Colonial Drive in
Ocoee, Orange County. Florida. The work will fall under the U.S. Environmental Protection Agency
(EPA) and OSHA guidelines and regulations for commercial facilities.
A certified inspector will perform the survey and deliver samples of suspect asbestos containing
materials (ACM) to Steve Moody Micro Services, Inc. and lead paint to PC&B Environmental
Laboratories. Inc.. both certified analytical laboratories, for analysis. Upon receipt of a signed
contract, the site inspection will be scheduled within 48 hours. A report detailing the findings of the
site inspection and sample analysis for asbestos containing will be completed within 14 business
days of receipt of the laboratory analysis.
The inspection will consist of a walk througb that will identify suspect homogeneous areas of ACM,
as required by current regulations. Each of these materials requires a minimum of three (3) to seven
(7) samples be collected depending on the type material and the quantity present. Also during the
walk through, suspect homogeneous areas oflead-based paint will be identified and representative
samples collected for analysis. Since there is not a way to provide a finn estimate for the number of
samples, the cost provided will be for up to 174 asbestos and 20 lead samples. If more samples are
required, they will be collected and held until additional authorization is received at the rate of
$20.00 per sample. The cost of the samples includes the sampling, analysis, and written and
photographic documentation of the sample location.
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City of Ocoee
Nodarse & Associates, Inc. Project No. 01-06-0255-305
Page 2
An asbestos survey of all areas of the facility which includes the interior and exterior of the building
will be performed. The sample locations and homogeneous area designations will be marked on
floor plans, ifftnnished by the client. The positive sample results will be provided in tabular form
and accompany the cost estimate for the abatement of any positive areas and it will be provided
within 14 business days after the receipt of laboratory results. The report will provide results from
the sample analysis and recommendations as to the homogeneous areas having materials which must
be considered as asbestos.
Please note that if suspect roofmg material must be sampled during the survey it will compromise the
roofing's integrity and N&A will not be liable for any roof leaks resulting from this scope of work.
The lead-based paint survey will cover all accessible painted surfaces, interior and exterior of the
facility. If because of unforeseen circumstances the person perfonning the surveys is prevented from
entering some areas, those areas will either be excluded or there will be a charge of $300.00 re-
mobilization fee to return at a later date, and the completion date will not be valid.
The cost for the pre-demolition asbestos and lead-based paint survey, sampling, analyses (up to 174
asbestos and 20 lead samples), and a combined report shall be a lump sum fee of $5,400.00. To
authorize us to proceed with this project, please execute and return to us a copy of the attached
Agreement sheet or a Purchase Order number. Authorization should be indicated by the person or
firm responsible for payment of our invoice. Please note the attached Agreement sheet forms a part
of this proposal and that our terms are "Net 30 Days."
N&A appreciates the opportunity to submit this proposal, and we look forward to working with you
on this project. If you have any questions or if we can provide any additional information, please
feel free to call us at your convenience.
Sincerely,
NODARSE & ASSOCIATES, INC.
~~ '..
Debra R. Harrington, ~
Environmental Department Manager
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